Reciprocity state pair

Live in Ohio, work in Indiana

Reciprocity agreement: Indiana doesn't tax your wages at the state level, so Ohio taxes them. Indiana county income tax still applies (Form IT-40RNR). Give your employer Form WH-47 so it stops withholding Indiana state tax; it still withholds the county tax.

By Abu HasnatPage updated Nov 7, 2026Data: Ohio and Indiana revenue departments (methodology)

Official tax guidance for both states

Check withholding, filing requirements and current forms with each state's tax agency.

Ohio: Department of Taxation (opens in new tab)
Indiana: Indiana Department of Revenue (opens in new tab)

Agency directory checked 2026-10-01 against the IRS state-government directory. This verifies the agency links, not an individual tax result. Use forms for the year you are filing.

Before you use this estimate

This model assumes a full-year resident of Ohio, ordinary employee wages and all workdays physically in Indiana. Check exemption eligibility before treating a work-state amount of $0 as your own result. Withholding is a prepayment, not final tax liability. Other income, a move during the year, remote work and separate local taxes or credits can change the result.

Wage-exemption conditions: OH residents working in IN exempt from IN state tax on wages; file Form WH-47 (Certificate of Residence).

I live inI work inAnnual wages ($)Filing status

State income tax: $3,947 a year

Modeled annual state income tax for living in Ohio and working in Indiana: about $3,947 on $100,000 of wages, $1,634 more than if you worked in Ohio.

Limits of this estimate:

Indiana's county component uses an illustrative 1.65% average, not your actual January 1 principal-work-county rate; local credits are not calculated.

Conditions for this pair: OH residents working in IN exempt from IN state tax on wages; file Form WH-47 (Certificate of Residence).

Tax guide and official sources: live in Ohio, work in Indiana

Official agency starting points: Ohio tax agency (opens in new tab) · Indiana tax agency (opens in new tab). These directory links identify the selected states' agencies, not your filing obligations. Check their individual-tax guidance and forms for the year you are filing.

Tax to Indiana

$1,634

county tax only

Tax to Ohio

$2,313

resident

Total state tax

$3,947

Typical state returns

This is the usual filing pattern, not a determination that you must file. Filing thresholds, age or dependent status, other income and withholding refunds can change which returns you need.

How this $100,000 estimate adds up

These steps follow the selected home, work state, salary and filing status. They reconcile the model's annual liability, not the amounts withheld from your paycheck.

Modeled state income tax for Ohio residence and Indiana work
Step	Indiana work state	Ohio home state
Tax before the modeled other-state credit	$1,634	$2,313
Modeled other-state credit subtracted	$0	$0
Tax after that credit	$1,634	$2,313

Total: $1,634 + $2,313 = $3,947 a year. Amounts are rounded for display. Work-state wage exemptions, when applicable, are already reflected in the first row; they are not an other-state credit.

No other-state credit is subtracted in this selected scenario. Included county components stay in these amounts; excluded local taxes and credits stay excluded. Federal income tax, payroll programs and refund eligibility are outside this reconciliation.

State tax at different salaries

Wages	To IN	To OH	Modeled total	If you worked in OH
$50,000	$809	$932	$1,740	$932
$75,000	$1,221	$1,619	$2,840	$1,619
$100,000	$1,634	$2,313	$3,947	$2,313
$150,000	$2,459	$3,688	$6,147	$3,688
$250,000	$4,109	$6,438	$10,547	$6,438

Single filer, all wages earned in Indiana, 2026 state tax rules, standard deductions. State income tax includes Indiana's average county income tax, which reciprocity does not cover (Form IT-40RNR; no Ohio credit for it is assumed). Other local income taxes are not included.

From paycheck withholding to your returns

Withholding: Give Indiana payroll Form WH-47 for the reciprocal state-wage exemption. Indiana county withholding may remain; arrange Ohio state withholding or estimates separately.
Returns: File the Ohio resident IT 1040. An Indiana IT-40RNR is used for qualifying reciprocal nonresident wages and county liability; other Indiana income can require IT-40PNR instead.
Credit or refund: Ohio and Indiana reciprocity removes Indiana state tax on covered wages, not Indiana county tax. No Ohio credit for that county tax is assumed by this model. Ohio municipal and school-district rules require a separate check.

Worked example: $100,000 of wages

Single filer, full-year resident of Ohio, all work performed in Indiana, no other income, standard deductions and modeled personal exemptions. Covered wages are exempt from Indiana state income tax under wage reciprocity. Pay a modeled $2,313 to Ohio and $1,634 in Indiana county tax, total $3,947. This exemption is not an other-state tax credit.

Ohio’s 2026 schedule adds $332 once taxable nonbusiness income exceeds $26,050, then 2.75% of the excess. The example includes that base amount before applicable credits.

Annual liability, not paycheck withholding or a refund estimate. Federal tax, payroll programs, other local taxes, special credits and part-year residency are excluded. State income tax includes Indiana's average county income tax, which reciprocity does not cover (Form IT-40RNR; no Ohio credit for it is assumed). Other local income taxes are not included.

Remote-work and local exceptions

For this example your principal employment is in Indiana on January 1. The county illustration uses 1.65%, not a specific county’s rate; your January 1 facts can change county liability. Indiana’s special short-term employment exception is not modeled.

Official forms and instructions

Source audit 2026-10-01. Use the return and instructions for the year you are filing; a current-forms link may still show a prior-year return. Official sources checked; not independently reviewed.

What to do

Your employer still withholds Indiana county tax. File Indiana Form IT-40RNR each year to settle it, along with your Ohio resident return.
Keep a record of the days you work in each state, especially if you sometimes work from home.

Local income taxes

Ohio: ~600+ municipalities levy income tax on wages at work location (commonly 1-2.5%; e.g., Columbus 2.5%, Cleveland 2.5%, Cincinnati 1.8%), regardless of state reciprocity. Residence city may also tax, with a full/partial/no credit for work-city tax depending on the city. An eligible 20-day occasional-entrant withholding exception can apply to work in another municipality; the principal work location and certain long-term worksites can require withholding from the first day. Small-employer and other rules may differ. Check with payroll and the municipality. Many school districts also levy a resident-only income tax.
Indiana: Every Indiana county levies a local income tax. Indiana residents pay the rate of the county they live in on January 1. People who live in another state pay the tax of the Indiana county where they principally work on January 1, and that includes residents of reciprocity states (KY, MI, OH, PA, WI) who file Form WH-47: the reciprocity agreements cover only the state tax.

Special credit rules

IN: Indiana county tax is separate from state wage reciprocity and state-tax credits. Another state's state-tax credit does not offset Indiana county tax; any eligible credit for out-of-state local tax is separate and is not modeled.

Frequently asked questions

Do I pay Indiana income tax if I live in Ohio?

If you qualify for wage reciprocity, no Indiana state income tax: under the reciprocity agreement Ohio taxes your wages. Indiana county income tax still applies, though: about $1,634 on $100,000 at the average county rate, filed on Form IT-40RNR. OH residents working in IN exempt from IN state tax on wages; file Form WH-47 (Certificate of Residence).

Do I have to file taxes in both Ohio and Indiana?

File the Ohio resident IT 1040. An Indiana IT-40RNR is used for qualifying reciprocal nonresident wages and county liability; other Indiana income can require IT-40PNR instead.

Will I be taxed twice?

Not at the state level: under the reciprocity agreement only Ohio taxes your wages. Indiana county tax still applies, so your total is about $3,947 on $100,000 ($2,313 to Ohio and $1,634 in Indiana county tax).

Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.